Helium Released From Natural Gas Balloon
Is this the beginning of the end for natural gas? Cooler
temperatures in the Northeast and moderating temperatures nationwide cut the
demand for spot natural gas as lower cash prices slashed into natural gas
futures. The July contract posted its biggest decline of the year, finishing
below the close of two weekly bars. If prices remain below the lows of the two
previous weekly bars’ closes, a change in trend will be indicated.
Natural gas started falling on Friday after spiking to a
contract and 20-day high. This action left a Turtle Soup Plus One
Sell setup, which the July contract
(
NGN0 |
Quote |
Chart |
News |
PowerRating) made good on Monday, falling
9.47% or .425, to 4.063.
In other energy markets, crude oil and gasoline fell after
OPEC officials reiterated they would be willing to raise output levels in accord
with their informal agreement to hike throughput in the event a basket of OPEC
oil remained above $28 for longer than a 20-day period. OPEC meets Wednesday to
solidify their agreement and to determine future output policy. The market may
have put even greater weight on the Department of Energy’s release of oil from
the nation’s Strategic Petroleum Reserve. The move signals that the government
will probably continue to work to advert spot shortages and ameliorate
supply-chain problems and potential shortages which may result from refining
problems associated with a cleaner-burning gasoline. July crude
(
CLN0 |
Quote |
Chart |
News |
PowerRating) fell
1.28 to 31.05 and unleaded gas
(
HUN0 |
Quote |
Chart |
News |
PowerRating) slipped .0260 to 1.0395.
Â
In stock index futures trading, a powerful rally in biotech (+9%), chips and
banks took all three major contracts higher. Three up signals from the
Market
Bias Indicators Page gave a strong combined clue that stock index futures
could move higher. The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating), the contract upon which the futures
is based, broke out of an inverted, intraday head-and-shoulders pattern and
quickly rallied 100 points from that break. The NASDAQ 100 futures
(
NDU0 |
Quote |
Chart |
News |
PowerRating)
contract settled up 155.00 points at 3982.50. September S&P futures
(
SPU0 |
Quote |
Chart |
News |
PowerRating)
rallied above the psychological 1500-level for a 16.50 gain to 1504.50. Dow futures
(
DJU0 |
Quote |
Chart |
News |
PowerRating)
came back from their decline on Friday for a finish 90.0 higher at
10,685.0.Â
Dollar index futures
(
DXU0 |
Quote |
Chart |
News |
PowerRating) rallied along with US equities, leaving the
September contract .42 higher at 105.94. The Swiss franc
(
SFU0 |
Quote |
Chart |
News |
PowerRating) was another
contract making good on a Turtle Soup Plus One
Sell setup Monday, and ended .0046 lower at .6197. Canadian dollars
(
CDU0 |
Quote |
Chart |
News |
PowerRating)Gold
(
GCQ0 |
Quote |
Chart |
News |
PowerRating) fell over 1% after the Commitment of Traders Report
showed many traders with long positions covered. The rise in gold has
recently been coinciding with a fall in the dollar and gold rose Monday as the
dollar recovered slightly against the euro. August slipped 3.2 to 288.0.
Orange juice rallied with the July contract moving to its highest level in
since Christmas. Juice has moved within a narrow range throughout 2000 and
Monday’s action marks the first breakout from this range. A narrowing, and
potentially explosive pattern was picked up by the
6/100 Low Volatility and
Multiple Days Low
Volatility lists last week. Juice also showed a pattern of higher lows out
of this tight consolidation, and a new 10-Day High, a situation described in
this space last week. Notice that juice also registered on Monday’s Momentum-5
List. The technical move is being fueled in part by news that the state
that produces 90% of Brazil’s orange juice, Sao Paulo, will see production drop
by 7.9% from the previous crop year.Â